Reply to I don't get the whole "fake rich $250k" thing. We make just under 200k and are more than comfortable

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Reply to "I don't get the whole "fake rich $250k" thing. We make just under 200k and are more than comfortable"

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[quote=Anonymous][quote=Anonymous]
You both don't really understand [i]marginal[/i] tax rates, do you?  You are being asked to pay 39.6% on anything [u]over $250K, after deductions[/u] which in reality, is probably closer to anything over $300K.  And for those of you who have big mortgages and big student loans, most of that is tax deductable and hence can be deducted from your gross income before you calculate taxes.

So, for example, if you actually earn $300K, and you take the standard deductions of $11,900 for a married couple and personal exemptions of $3800 each for a family of four and nothing else, you have $27100 in deductions and [b]only pay the 39.6% rate on $22,900 which is $9,640 [/b]and that's without mortgage or student loan interest deductions, let alone any other deductions.  For tax payers who itemize, there are very few who make under $300K that will see any difference in their effective tax rate.[/quote]

and I forgot to add.  Currently, you are paying 35% on that $22,900 which is $8015.  So the difference that this change in tax rate will make is $1625 on those making $300K and taking nothing but the standard deduction and personal exemptions for a family of four.[/quote]

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